Reborn Coffee flagged by Nasdaq over equity shortfall
Reborn Coffee regained Nasdaq filing compliance but now faces a stockholders’ equity deficiency and a 45‑day deadline to present a remediation plan.
Rhea-AI Filing Summary
Reborn Coffee, Inc. (REBN) reported that Nasdaq has restored its compliance status with the periodic filing requirement after the company filed its Quarterly Report on Form 10‑Q for the period ended June 30, 2026 on September 14, 2026.
On September 16, 2026, Nasdaq separately notified Reborn Coffee that it is no longer in compliance with Nasdaq Listing Rule 5550(b)(1), which requires minimum stockholders’ equity of $2,500,000. The June 30, 2026 Form 10‑Q reported stockholders’ equity of $735,642, and the company also does not meet alternative market value or net income standards. Reborn Coffee has 45 days, until November 2, 2026, to submit a compliance plan; if accepted, Nasdaq may grant up to 180 days from the notice date to regain compliance. The notice has no immediate effect on the listing of the common stock, and the company is evaluating options and intends to timely submit a plan, while cautioning there is no assurance the plan will be accepted or that compliance will be regained.
Positive
- Periodic filing compliance restored: Nasdaq determined Reborn Coffee is back in compliance with Listing Rule 5250(c)(1) after the June 30, 2026 Form 10‑Q was filed on September 14, 2026, closing that matter.
Negative
- Stockholders’ equity well below Nasdaq minimum: equity of $735,642 at June 30, 2026 is far under the $2,500,000 requirement, creating a risk to continued Nasdaq Capital Market listing if compliance is not regained.
- Limited timeframe to cure deficiency: Reborn Coffee has 45 days to submit a plan and at most 180 days from the notice date to regain compliance, or it faces potential delisting absent a successful appeal.
Filing Explained
If Nasdaq does not accept Reborn Coffee’s compliance plan, the company may appeal that decision to a Nasdaq Hearings Panel, providing a further procedural review route.
8-K Event Classification
Item 3.01 — Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
1 item
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Securities
The company received a delisting notice, failed to satisfy a continued-listing rule or standard, or transferred its listing.
Key Figures
Minimum stockholders’ equity requirement: $2,500,000
Reported stockholders’ equity: $735,642
Plan submission window: 45 days
+3 more
6 metrics
Minimum stockholders’ equity requirement
$2,500,000
Nasdaq Listing Rule 5550(b)(1) threshold for The Nasdaq Capital Market
Reported stockholders’ equity
$735,642
Stockholders’ equity reported in the June 30, 2026 Form 10‑Q
Plan submission window
45 days
Time from September 16, 2026 notice to submit compliance plan, until November 2, 2026
Maximum compliance extension
180 days
Maximum extension from date of Nasdaq notice if plan is accepted
Form 10‑Q filing date
September 14, 2026
Date the June 30, 2026 Form 10‑Q was filed, restoring periodic filing compliance
Notice date
September 16, 2026
Date Nasdaq notified Reborn Coffee of stockholders’ equity deficiency
Key Terms
Stockholders’ equity, Nasdaq Listing Rule 5550(b)(1), Continued listing, Nasdaq Hearings Panel, +1 more
5 terms
Stockholders’ equity financial
"the Company reported stockholders’ equity of $735,642"
Stockholders’ equity is the portion of a company’s value that belongs to its owners after subtracting what the company owes from what it owns — like the equity in a house after paying the mortgage. For investors it shows the company’s net worth and can indicate financial strength, a cushion against losses, and the amount potentially available to support dividends or reinvestment; tracking changes helps assess whether the business is building or eroding owner value.
Nasdaq Listing Rule 5550(b)(1) regulatory
"Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain"
Continued listing regulatory
"requirement for continued listing on The Nasdaq Capital Market"
When a stock receives a "continued listing," it means the exchange has decided the company’s shares will remain tradable on that market after a review or challenge, often because the company met certain requirements or corrective steps. For investors this matters because continued listing preserves liquidity and access to buy or sell the stock—think of it as a store passing an inspection so customers can keep shopping rather than being forced to close.
Nasdaq Hearings Panel regulatory
"opportunity to appeal the decision to a Nasdaq Hearings Panel"
A Nasdaq hearings panel is a group of experts that reviews cases when a company's stock listing is at risk of being removed from the exchange. They evaluate whether the company has met certain standards and determine if it can keep trading on Nasdaq. This process matters to investors because it can affect a company's ability to raise money and maintain credibility in the market.
Forward-looking statements regulatory
"contains forward-looking statements within the meaning of Section 27A"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What Nasdaq issue did Reborn Coffee (REBN) resolve with this 8-K?
Reborn Coffee resolved a prior Nasdaq deficiency related to delayed periodic reporting. After filing its Form 10‑Q for the quarter ended June 30, 2026 on September 14, 2026, Nasdaq determined the company complies with Listing Rule 5250(c)(1), and that matter is closed.
Why is Reborn Coffee (REBN) now out of compliance with Nasdaq equity rules?
Nasdaq notified Reborn Coffee on September 16, 2026 that it no longer meets Listing Rule 5550(b)(1), which requires $2,500,000 in stockholders’ equity. The company’s June 30, 2026 Form 10‑Q reported stockholders’ equity of $735,642 and it also does not meet alternative standards.
How long does Reborn Coffee (REBN) have to regain Nasdaq equity compliance?
Reborn Coffee has 45 days, until November 2, 2026, to submit a plan to Nasdaq. If the plan is accepted, Nasdaq may grant up to 180 days from the date of the notice for the company to regain compliance with the stockholders’ equity requirement.
Does the Nasdaq equity notice immediately affect trading of REBN stock?
No. The company states that the Nasdaq notice regarding stockholders’ equity has no immediate effect on the listing of its common stock on The Nasdaq Capital Market. Future impact depends on whether its compliance plan is accepted and successfully executed.
What options is Reborn Coffee (REBN) considering to address the Nasdaq deficiency?
Reborn Coffee states it is presently evaluating various courses of action to regain compliance and intends to timely submit a plan to Nasdaq. It also notes there can be no assurance the plan will be accepted or that compliance will ultimately be regained.
What happens if Reborn Coffee’s (REBN) compliance plan is not accepted by Nasdaq?
If Nasdaq does not accept Reborn Coffee’s plan to regain equity compliance, the company will have the opportunity to appeal the decision to a Nasdaq Hearings Panel. The notice itself does not immediately result in delisting.
AI-generated analysis. How Rhea-AI works. Not financial advice.
